Technology
Chunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Fourth Quarter and Full Year of 2024
Published
2 years agoon
By
TAIPEI, Jan. 23, 2025 /PRNewswire/ — Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (“Chunghwa” or “the Company”) today reported its un-audited operating results for the fourth quarter of 2024. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards (“T-IFRSs”) on a consolidated basis.
(Comparisons throughout the press release, unless otherwise stated, are made with regard to the prior year period.)
Fourth Quarter 2024 Financial Highlights
Total revenue increased by 5.6% to NT$ 65.35 billion.Consumer Business Group revenue increased by 2.2% to NT$ 37.33 billion.Enterprise Business Group revenue increased by 10.2% to NT$ 23.96 billion.International Business Group revenue decreased by 2.3% to NT$ 2.50 billion.Total operating costs and expenses increased by 6.0% to NT$ 53.83 billion.Operating income increased by 11.5% to NT$ 11.65 billion.EBITDA increased by 5.9% to NT$ 21.59 billion.Net income attributable to stockholders of the parent increased by 9.0% to NT$ 9.00 billion.Basic earnings per share (EPS) was NT$1.16.Revenue, operating income, income before tax, and EPS are all in line with our guidance.
Full Year 2024 Financial Highlights
Total revenue increased by 3.1% to NT$230.03 billion.Consumer Business Group revenue increased by 2.1% to NT$ 139.98 billion.Enterprise Business Group revenue increased by 3.3% to NT$ 75.40 billion.International Business Group revenue increased by 8.0% to NT$ 9.92 billion.Total operating costs and expenses increased by 4.0% to NT$ 183.27 billion.Operating income increased by 1.1% to NT$ 46.88 billion.EBITDA increased by 0.6% to NT$ 86.50 billion.Net income attributable to stockholders of the parent increased by 0.8% to NT$ 37.21 billion.Basic earnings per share (EPS) was NT$4.80.Operating income, income before tax, and EPS all exceeded the high-end target of our full-year guidance.
“Chunghwa delivered an outperforming result in 2024, achieving a seven-year high in full-year revenue and surpassing the high-end of our profitability guidance,” stated Mr. Chih-Cheng Chien, Chairman and CEO of Chunghwa Telecom. “With a precise strategic focus, we delivered stable and healthy growth across all business segments during the quarter. We maintained our leading position in Taiwan’s mobile market with a 40.3% revenue share and a 37.9% subscriber share. Our 5G postpaid subscription growth continued to contribute to mobile monthly fee uplift and resulted in a 38.8% 5G subscriber market share in Taiwan. Additionally, our successful cross-tier upgrade promotion for fixed broadband services resulted in the doubled 1 Gbps subscriber net-adds as over 70% of the promotion adopters chose 300 Mbps and above, including the 1Gbps service offering.”
“Regarding our three business groups, the Consumer Business Group maintained its growth momentum in both revenue and profit, resulting from subscription increase and popularity of individual and home-centric services. Subscribers to our multiple-play packages increased by 57% year-over-year, while subscriptions to our video services reached a record high with a 15.2% year-over-year increase. Consumer cybersecurity also enjoyed a 22% subscriber increase year over year. Our Enterprise Business Group performed impressively, with a robust 24.1% year-over-year growth in ICT business revenue, mainly contributed by the growth in IDC, cloud, and cybersecurity revenue, increasing by 62%, 46%, and 56% year over year, respectively. For innovative achievement, in the fourth quarter, we successfully developed Taiwan’s first 5G unmanned vehicle solution for smart harbor inspections, capable of operating across land, sea, and sky. We expect to extend the solution to firefighting and coast patrolling-related projects. For international business, our International Business Group led our overseas subsidiaries to achieve remarkable success in 2024 by providing ICT solutions to high-tech companies and the PCB industry in Japan, the United States, and Southeast Asia,” said Mr. Rong-Shy Lin, President of Chunghwa Telecom.
“To monetize our technology capabilities, in the fourth quarter, we team up with NTT Corporation to showcase an ultra-low-latency immersive video program via IOWN APN, paving a new way for innovative virtual viewing solutions. Meanwhile, as the only telco in Taiwan capable of offering Open RAN testing, we successfully helped Taiwanese vendors go global and secure international funding. We also plan to roll out commercial services for OneWeb and SES by mid-2025 to boost satellite-related revenues,” added Mr. Lin.
“Our ESG efforts received global acknowledgment as we retained the position in the 2024 Dow Jones Sustainability World Index, won The Asset ESG Corporate Jade Award, and were named in Newsweek’s “World’s Most Trustworthy Companies 2024,” affirming our commitment to sustainability. Looking ahead to 2025, we are confident in maintaining our leading position across all key benchmarks in the industry,” Mr. Chien added.
Revenue
Chunghwa Telecom’s total revenues for the fourth quarter of 2024 increased by 5.6% to NT$ 65.35 billion.
Consumer Business Group’s revenue increased by 2.2% to NT$ 37.33 billion. Mobile service revenue of CBG +3.0% YoY due to 5G migration as well as continued growth of postpaid subscribers. Fixed broadband revenue increased by 2.8% YoY due to the successful speed upgrade strategy. In addition, sales revenue rose on year mainly due to better sales of smartphones. CBG’s income before tax for the fourth quarter of 2024 increased 0.77 billion year-over-year, primarily due to the strong performance of our core business and a one-time impairment loss recognized last year.
Enterprise Business Group’s revenue increased by 10.2% to NT$ 23.96 billion, primarily driven by a robust 24.1% year-over-year growth in ICT business revenue. In the fourth quarter, major growth drivers, such as IDC, cloud, and cybersecurity services, delivered strong revenue growth by 62%, 46% and 56%, respectively., fueled by both their projects and recurring revenues. However, despite the ongoing 5G migration and fixed broadband speed upgrades demand that continued to increase related service revenues, the decline of mobile voice revenue and fixed voice revenue remained to lead to a relatively flat year-over-year performance in our EBG’s core business, which further dragged down its income before tax as well on a year-over-year basis.
International Business Group’s revenue dipped slightly by 2.3% to NT$2.5 billion, mainly due to the decline in international voice revenue. However, as our robust IDC business grew and its demand continued to increase, IBG’s income before tax increased year-over-year.
Total revenue for the full year of 2024 increased by 3.1% to NT$230.03 billion, mainly due to continued strong performance in ICT, mobile, and broadband services
Operating Costs and Expenses
Total operating costs and expenses for the fourth quarter of 2024 increased by 6.0% to NT$ 53.83 billion, mainly due to increasing cost of goods, ICT project cost driven by the growing ICT business, as well as the higher manpower cost, professional service fees and electricity expenses.
Total operating costs and expenses for 2024 increased by 4.0% to NT$ 183.27 billion.
Operating Income and Net Income
Income from operations for the fourth quarter of 2024 increased by 11.5% to NT$ 11.65 billion. The operating margin was 17.83%, as compared to 16.90% in the same period of 2023. Net income attributable to stockholders of the parent increased by 9.0% to NT$ 9.00 billion. Basic earnings per share was NT$1.16.
Income from operations for 2024 increased by 1.1% to NT$ 46.88 billion. The operating margin was 20.38%, compared to 20.77% for 2023. Net income attributable to stockholders of the parent increased by 0.8% to NT$ 37.21 billion. Basic earnings per share was NT$4.80.
Cash Flow and EBITDA
Cash flow from operating activities, as of December 31st, 2024, increased by 6.2% year over year to NT$ 79.17 billion.
Cash and cash equivalents, as of December 31st, 2024, increased by 7.3% to NT$ 36.28 billion as compared to that as of December 31st, 2023.
EBITDA for the fourth quarter of 2024 was NT$ 21.59 billion, increasing by 5.9% year over year. EBITDA margin was 33.04%, as compared to 32.95% in the same period of 2023.
EBITDA for 2024 increased by 0.6 % to NT$ 86.50 billion, and EBITDA margin was 37.60%, compared to 38.53% for 2023.
Business Highlights
Mobile
As of December 31st, 2024, the number of mobile subscribers slightly decreased by 0.1% to 13.12 million. In the fourth quarter, total mobile service revenue increased by 1.7% year-over-year to NT$ 16.88 billion, while mobile post-paid ARPU excluding IoT SIMs decreased 0.7% year over year to NT$ 552.
Fixed Broadband/HiNet
As of December 31st, 2024, the number of broadband subscribers increased by 0.6% to 4.43 million. The number of HiNet broadband subscribers increased by 1.3% to 3.74 million. In the fourth quarter, total fixed broadband revenue grew 2.9% year over year to NT$ 11.45 billion, while ARPU increased 1.7% to NT$793.
Fixed line
As of December 31st, 2024, the number of fixed-line subscribers was 8.89 million.
(in NT$ billion)
2024
2023
YoY%
Oct.-Dec.
Jan.-Dec.
Oct.-Dec.
Jan.-Dec.
Oct.-Dec.
Jan.-Dec.
Revenue
65.35
230.03
61.87
223.20
5.6
3.1
Operating costs
and expenses
53.83
183.27
50.78
176.21
6.0
4.0
Other income and
expense (Note 1)
0.13
0.12
(0.64)
(0.64)
120.7
119.2
Operating income
11.65
46.88
10.45
46.35
11.5
1.1
Income before tax
11.94
47.76
10.44
46.99
14.4
1.6
Net income
attributable to
stockholders of the
parent
9.00
37.21
8.26
36.92
9.0
0.8
EBITDA
21.59
86.50
20.39
86.01
5.9
0.6
EPS(NT$)
1.16
4.80
1.06
4.76
9.0
0.8
2025 Guidance
For 2025, the Company expects its total revenue to increase by NT$ 2.71~NT$3.71 billion, or 1.2%~1.6%, to NT$232.74~NT$233.74 billion as compared to the un-audited consolidated total revenue of 2024. Operating costs and expenses for 2025 are expected to increase by NT$4.31~NT$4.38 billion, or 2.4%, to NT$187.58~NT$187.65 billion as compared to the prior year. Income from operations is expected to decrease by NT$0.16~NT$1.58 billion, or-0.3%~3.4% to NT$45.30~NT$46.72 billion as compared to the prior year. Income before income tax, net income attributable to stockholders of the parent and earnings per share are expected to be NT$46.11~NT$47.88 billion, NT$35.84~NT$37.39 billion and NT$4.62~NT$4.82, respectively, representing a decrease of NT$1.65 to an increase of NT$0.12 billion, a decrease of NT$1.37 to an increase of NT$ 0.18 billion and a decrease of NT$0.18 to an increase NT$0.02 respectively, year over year.
Acquisition of Property, Plant and Equipment in 2025 is expected to increase by NT$3.37 billion to NT$32.36 billion as compared to the prior year, owing to the expansion of AI internet data center, new construction of submarine cable, the investments in 5G deployment to maintain a competitive edge, enhance the network resilience and security, and the elimination of energy-intensive equipment to realize ESG practices.
(NT$ billion except EPS)
2025(F)
2024
(un-audited)
change
YoY(%)
Revenue
232.74~233.74
230.03
2.71~3.71
1.2%~1.6%
Operating Costs and Expenses
187.58~187.65
183.27
4.31~4.38
2.4 %
Other Income and Expense
0.13~0.63
0.12
0.01~0.51
8.6%~419.0%
Income from Operations
45.30~46.72
46.88
(1.58)~(0.16)
(3.4%)~(0.3%)
Non-operating Income
0.81~1.16
0.88
(0.07)~0.28
(8.0%)~31.8%
Income before Income Tax
46.11~47.88
47.76
(1.65)~0.12
(3.5%)~0.3%
Net Income Attributable to
Stockholders of The Parent
35.84~37.39
37.21
(1.37)~0.18
(3.7%)~0.5%
EPS(NT$)
4.62~4.82
4.80
(0.18)~0.02
(3.8%)~0.4%
EBITDA
86.04~87.46
86.50
(0.46)~0.96
(0.5%)~1.1%
EBITDA Margin
37.0%~37.4%
37.6 %
(0.6%)~(0.2%)
Acquisition of Material Assets
35.37
30.24
5.13
17.0 %
Acquisition of Property,
Plant and Equipment and
Intangible Assets
32.36
28.99
3.37
11.6 %
Others
3.01
1.25
1.76
140.8 %
Disposal of Material Assets
–
0.02
(0.02)
(100 %)
Note 1: “Other income and expenses” includes gains (losses) on disposal of property, plant and equipment (PP&E) and investment property, and impairment loss on PP&E and investment property.
Note 2: The calculation of growth rates is based on NT$ thousand.
Financial Statements
Financial statements and additional operational data can be found on the Company’s website at http://www.cht.com.tw/en/home/cht/investors/financials/quarterly-earnings
NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about Chunghwa’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwa’s filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this press release reflect the current belief of Chunghwa as of the date of this press release and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
NON-GAAP FINANCIAL MEASURES
To supplement the Company’s consolidated financial statements presented in accordance with International Financial Reporting Standards pursuant to the requirements of the Financial Supervisory Commission, or T-IFRSs, Chunghwa Telecom also provides EBITDA, which is a “non-GAAP financial measure”. EBITDA is defined as consolidated net income excluding (i) depreciation and amortization, (ii) certain financing costs, (iii) other expenses or income not related to the operation of the business, (iv) income tax, (v) (income) loss from discontinued operations.
In managing the Company’s business, Chunghwa Telecom relies on EBITDA as a means of assessing its operating performance because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) other expenses or income not related to the operation of the business, (iv) income tax, (v) (income) loss from discontinued operations.
CAUTIONS ON USE OF NON-GAAP FINANCIAL MEASURES
In addition to the consolidated financial results prepared under T-IFRSs, Chunghwa Telecom also provide non-GAAP financial measures, including “EBITDA”. The Company believes that the non-GAAP financial measures provide investors with another method for assessing its operating results in a manner that is focused on the performance of its ongoing operations.
Chunghwa Telecom’s management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company’s operating results, as well as when forecasting and analyzing future periods. However, the Company recognizes that:
these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Company’s T-IFRSs financial measures;these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Company’s T-IFRSs financial measures;these non-GAAP financial measures should not be considered to be superior to the Company’s T-IFRSs financial measures; andthese non-GAAP financial measures were not prepared in accordance with T-IFRSs and investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principle.
Further, these non-GAAP financial measures may be unique to Chunghwa Telecom, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company’s results to the results of other companies. Readers are cautioned not to view non-GAAP results as a substitute for results under T-IFRSs, or as being comparable to results reported or forecasted by other companies.
About Chunghwa Telecom
Chunghwa Telecom (TAIEX 2412, NYSE: CHT) (“Chunghwa” or “the Company”) is Taiwan’s largest integrated telecommunications services company that provides fixed-line, mobile, broadband, and internet services. The Company also provides information and communication technology services to corporate customers with its big data, information security, cloud computing and IDC capabilities, and is expanding its business into innovative technology services such as IoT, AI, etc. Chunghwa has been actively and continuously implemented environmental, social and governance (ESG) initiatives with the goal to achieve sustainability and has won numerous international and domestic awards and recognitions for its ESG commitments and best practices. For more information, please visit our website at www.cht.com.tw
Contact: Angela Tsai
Phone: +886 2 2344 5488
Email: chtir@cht.com.tw
View original content:https://www.prnewswire.com/news-releases/chunghwa-telecom-reports-un-audited-consolidated-operating-results-for-the-fourth-quarter-and-full-year-of-2024-302358407.html
SOURCE Chunghwa Telecom
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Global Security & Technology Summit Unveils Month-Long Program of Activities Ahead of December Event
Published
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RIYADH, Saudi Arabia, Oct. 24, 2026 /PRNewswire/ — The Organizing Committee of the Global Security & Technology Summit (GSTS) held an introductory session today at the Ministry of Interior’s headquarters in Riyadh, bringing together representatives from the government, private, and nonprofit sectors to introduce the program of activities leading up to the summit. The upcoming summit will be held in Riyadh under the patronage of HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, under the supervision of HRH Prince Abdulaziz bin Saud bin Naif bin Abdulaziz Al Saud, Minister of Interior, and organized by the Ministry of Interior in cooperation with Tuwaiq Academy.
During the session, the Organizing Committee presented the comprehensive GSTS program, comprising three key components: GSTS Month, running from November 1 to 30, 2026; the Global Security & Innovation Fair (SAIF), taking place from November 24 to 26, 2026; and the main Summit, scheduled for December 18 to 20, 2026, in Riyadh. Together, these events form an integrated program designed to advance security and technology innovation, strengthen national capabilities, and foster international cooperation.
GSTS Month will feature working groups, boot camps, training programs, knowledge-sharing sessions, and technical workshops across Saudi Arabia’s 13 administrative regions, delivered both in person and remotely in collaboration with specialized entities. The month-long program aims to develop national capabilities, identify emerging talent, enrich knowledge-sharing opportunities, and equip professionals with the knowledge and skills needed to develop innovative solutions to future security and technology challenges.
The main Summit will bring together global leaders, decision-makers, experts, and innovators to explore the future of security and technology, promote the integration of advanced technologies within the security sector, strengthen national capabilities, support innovation, and foster international cooperation, further positioning the Kingdom as a global hub for security and technology.
Showcasing the latest technological breakthroughs and security solutions, the summit will bring together government entities, private sector organizations, academic institutions, and research centers to facilitate knowledge exchange and collaboration across key fields, including cybersecurity, artificial intelligence (AI), the Internet of Things (IoT), smart security solutions, emerging technologies, and crisis management. The program will also feature main sessions, specialized discussions, and interactive exhibitions. Registration is available at gsts.sa.
Advisor to HRH the Minister of Interior and Chairman of the GSTS Organizing Committee, Ahmed Altowayan, stated that the summit builds on Saudi Arabia’s efforts to establish an advanced security and technology ecosystem focused on knowledge and innovation, keeping pace with rapid developments and future challenges.
Mr. Altowayan noted that the summit is a global platform for strengthening cooperation and exchanging expertise, anticipating future developments in security and technology, and developing strategic partnerships and innovative solutions that enhance the efficiency and readiness of security systems.
Vice Chairman of the GSTS Organizing Committee, Eng. Abdulaziz Alhammadi, said that the summit will offer a range of integrated programs and activities focused on enhancing national skills, encouraging innovation, and supporting international cooperation.
He added that GSTS Month will help build national capabilities, discover talent, and develop skills, with SAIF providing a platform for innovators and researchers from around the world to showcase leading technological solutions, while the main Summit will bring together leaders and experts to discuss the future of security and technology and explore new strategic partnership opportunities.
SAIF will take place at the Riyadh International Convention & Exhibition Center, bringing together innovators, researchers, technology talents, and industry experts from around the world to showcase promising innovations and projects across 14 fields of technology and innovation. The fair will provide opportunities to engage with project owners, including students, graduates, and entrepreneurs, and explore the different stages of innovation development through interactive zones, panel discussions on emerging security and innovation trends, and knowledge-sharing workshops led by specialists. Visitor registration is open to participants from within and outside the Kingdom through saifair.sa.
The introductory session also featured contributions from representatives of government, private, and nonprofit sector entities, alongside members of the media. Discussions focused on developing national capabilities in security and technology, strengthening students’ technical expertise, translating scientific research into practical solutions, and supporting Saudi companies in developing security and technology solutions and advancing digital transformation.
Organized by the Ministry of Interior in cooperation with Tuwaiq Academy, GSTS is produced by Tahaluf, with the Ministry of Education serving as Strategic Scientific Partner, Tahakom as Founding Partner, and Elm as Principal Partner.
Registration for participants from within and outside the Kingdom is available at gsts.sa.
Click here to view the media kit.
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Axon Announces Body 5: Next-Generation Camera Built for the AI Era
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SCOTTSDALE, Ariz., Oct. 24, 2026 /PRNewswire/ — Axon (Nasdaq: AXON), the global leader in public safety technology, today announced Axon Body 5, its newest body-worn camera designed to bring more powerful intelligence, connectivity and real-time support directly to officers in the field.
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Axon Body 5: Built for the AI Era
Built from the ground up for the AI era, Axon Body 5 delivers 25x the AI processing power than earlier generation Axon body cameras, alongside advancements in connectivity, audio, video and battery life. Together, these upgrades give the camera the physical power to run smarter AI features — both today and as new AI tools are developed in the future — while also making it more dependable for officers to use every day.
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25x more processing power for AI: A powerful new computing architecture creates the capacity to support current and future AI features directly on the body camera.Enhanced video: Improved video captures clearer evidence across challenging environments, including better low-light performance.Improved connectivity: Seamless connectivity in urban and remote environments – and more precise location capability – helps officers, cameras and remote support teams stay connected when timely information matters most.Longer battery life: 20% more battery life than the previous generation helps keep the camera ready and connected throughout an officer’s shift.
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Bringing More of Axon’s AI Era Into the Field
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Escalation Detection: When an Axon Body 4 or Axon Body 5 camera is activated and recording, Guardian has the ability to detect potential conflicts in real time and create an alert in Axon Fusus. A human reviews the livestream and decides if additional support or action is needed.Approach Alert: When active on Axon Fleet 3, Guardian can detect if the door of a stopped vehicle opens and alert the officer through the in-car display and their body-worn camera.
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About Axon
Axon (Nasdaq: AXON) is the global leader in public safety technology supporting state, local, federal and international public safety agencies with technology designed to Protect Life. Complementing its mission, Axon’s growing Enterprise market focuses on protecting critical infrastructure and frontline workers across multiple industries including corporate security, hospitality, retail and healthcare. Founder-led since 1993, Axon builds products with transparency and responsibility. From TASER energy devices to today’s connected network of hardware – including cameras, drones, and robotics – cloud software, sensors, and AI-tools, the Axon ecosystem helps seamlessly protect people and places when it matters most. To ensure these technologies align with community expectations, Axon’s independent Ethics & Equity Advisory Council guides the ethical, inclusive, and accountable design of its products and services. Learn more about the EEAC and Axon’s Responsible Innovation framework at Axon Responsibility.
Non-Axon trademarks are the property of their respective owners. Axon, TASER and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.
Please visit https://investor.axon.com and https://www.axon.com/newsroom for more information.
Media Contact:
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Vice President, Communications
press@axon.com
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In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design
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ROCHESTER, N.Y., Oct. 24, 2026 /PRNewswire/ — What early design choice causes many custom aluminum projects to become heavier, costlier, or harder to manufacture? That question is addressed in a HelloNation article featuring insights from Custom Fabrication Expert Mark Coyle of American Custom Metals, Inc. in Rochester, New York, that outlines how misunderstanding aluminum behavior leads designers to rely on thick walls instead of stronger geometry.
The article begins by explaining that many people assume thicker walls automatically make aluminum parts stronger. It notes that aluminum does not respond to wall thickness the way steel does. Instead, its performance is shaped by how the metal flows through the extrusion die. The article states that custom aluminum design is more effective when profiles use ribs, chambers, and flanges to create stiffness without adding unnecessary weight. This guidance helps readers understand why adding material often increases cost without improving strength.
The article also highlights that thicker walls change how aluminum moves during extrusion. When heavy areas fill more slowly, the metal cools unevenly and can develop stress that only appears later. The HelloNation piece explains that well-balanced geometry keeps extrusion smooth and predictable. This consistency makes it easier to maintain dimensional accuracy across long production runs. By focusing on geometry, custom aluminum design avoids the problems that come with slow extrusion speeds and uneven cooling.
Another insight in the article centers on how ribs and internal supports influence stability. It describes how a thin wall supported by a properly placed rib often performs better than a thick wall with no reinforcement. This happens because the rib helps distribute load, improve stiffness, and guide the aluminum as it cools. The article explains that this structural approach makes custom aluminum design more efficient and gives designers more control over how the final part behaves under pressure.
The article also shows why early collaboration between designer and fabricator prevents costly changes. It states that a fabricator familiar with extrusion can catch potential issues before a die is built. Small adjustments to corners or transitions can remove weak points or improve metal flow. The article notes that this teamwork keeps the design aligned with real-world production. By working together early, both sides reduce the risk of redesigning the die after the first test run.
Machining is another area where the article explains how wall thickness affects performance. Features such as deep pockets or sharp internal angles may require slow feed rates or special tooling. When walls are thicker than needed, those areas can become difficult to machine cleanly. The article states that thoughtful custom aluminum design makes machining more predictable. Small changes, such as adding radiused edges or sizing features to match standard tools, help shorten cycle times and prevent tool wear.
Thermal behavior receives detailed attention as well. The article explains that aluminum retains heat differently depending on the mass of each section. Thicker walls hold heat longer, which increases the chance of distortion during extrusion, machining, or finishing. When a design uses geometry to create strength, the material cools more evenly. This reduces warping and helps long profiles stay aligned. The article notes that stable cooling is important for components that require a precise fit and consistent shape throughout an entire production run.
Cost is also a key topic in the article. It states that heavier profiles increase material use, extrusion time, and tooling needs. A custom aluminum design that relies on geometry instead of mass lowers material consumption and keeps the fabrication process efficient. The article explains that lighter parts are easier to handle, ship, and assemble. This saves money across multiple stages of production and supports long-term manufacturing efficiency.
The article also notes that smart custom aluminum design creates profiles that behave predictably during extrusion and machining. Smooth transitions, balanced wall dimensions, and structural features help reduce the chance of distortion or dimensional drift. These elements also lower scrap rates and support reliable performance. By using geometry instead of excess material, designers build parts that maintain strength without compromising manufacturability.
As the article concludes, it emphasizes that avoiding thick walls is one of the best ways to improve performance and lower cost. It states that the most dependable custom aluminum components come from designs that use structural features to strengthen the profile. When designers understand how aluminum behaves at each stage of extrusion and machining, they create parts that are strong, efficient, and consistent from batch to batch. This approach turns custom aluminum design into a predictable process rather than a series of uncertain adjustments.
A Common Mistake in Custom Aluminum Design features insights from Mark Coyle, Custom Fabrication Expert of Rochester, NY, in HelloNation.
About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.
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